dre gent 27 Problem 8.28 Complete the steps below using cell references to given data or previour calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a colum, an absolute cell reference or a mixed cell reference may be preferred if a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a call or fimetion. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, swally the Given Data section. You are choosing between two projects, but can only take one. The cash flows for the projects are given in the table below: 1. What are the IRRs of the two projects? b. If your discount rate is 5%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? 1 2 4 Project A Project B -50 S 100 S 25 S 20s 20 S 40s 20 50 s 15 60 a. What are the IRRs of the two projects? IRR project IRR project b. If your discount rate is 5%. What are the NPVs of the two projects? Discount rate 596 NPV project A NPV project B e. The difference in the initial investment causes NPV and IRR to rank the projects differently Is this statement True False? 79 30 Requirements 11 1 In cell D1S, by using cell references, calculate the IRR of project A (1 p.) 12 2 in cell D16, by using cell references, calculate the IRR of project B (1 pt.) 3 In cell D22. by using the NPV function and cell references, calculate the NPV of project A (1 p) H 4 In cell D23, by using the NPV function and cell references, calentate the NPV of project 1 (1 pt). 5 In cell G27. type True or False depending on whether the difference in the ranking of the two projects (IRR V. NPV) is due to the difference in the initial investment (1 p.) 8-28 Credit + od